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Penalties imposed on major exchanges underscore  perceptions that bitcoin requires heavy regulation and oversight. Across China, blockchain technology is recognized as an increasingly important development; however, bitcoin as a “virtual good” in China is facing yet another challenge from the People’s Bank of China (PBOC). On May 10, 2017, China’s top-tier financial media outlet,  Caixin , reported that “according to a person close to PBOC, PBOC will soon issue a notice of penalties to BTCC, OKCoin and Huobi for irregularities based on its previous inspection in the past few months. The major problems are [related to] illegal margin trading services and lack of internal controls for anti-money laundering. The related penalty details have already been confirmed internally; all that is left to do is go through approval procedures.” Caixin also stated that, according to their source, further “regulation on bitcoin exchange and regulation on anti-money laundering systems for bitcoin ex